Internet Consulting Firm Is Buying Mitchell Madison

USWeb/CKS, a consulting and marketing firm that is especially prominent in the Internet sector, announced an agreement Friday to buy Mitchell Madison Group.

The clients of Mitchell Madison, a strategy consultancy formed in 1994 by 30 McKinsey & Co. alumni, include seven of the 10 largest commercial banks and six of the 10 largest investment banking and securities companies.

The combination would benefit "businesses in the new economy" that need to "create entirely new business models," said Thomas Steiner, the one-time McKinsey financial industry consultant who is co-founder and managing partner of Mitchell Madison.

Mr. Steiner will be president and chief operating officer of USWeb/CKS, reporting to chief executive officer Robert Shaw. The acquirer said it would issue stock valued at about $320 million for Mitchell Madison.

The latter would bring 550 consultants to USWeb, a firm so fast growing that it added about that many to its staff in the 90 days through July 21, to a total of 2,900.

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